Blended Learning and Consulting for Resource Limited Enterprises

The Case of a Prototyping, Production and Logistics Service Centre at a Business

Incubator in Brazil

J. Antão B. Moura

, Marcelo A. de Barros

and Francilene P. Garcia

1,2

Systems and Computing Department, Federal University of Campina Grande, Campina Grande, Brazil

Technology Park Foundation of the State of Paraíba, PB, Campina Grande, Brazil

Keywords: Blended Learning, Blended Consulting, Prototyping, Production and Logistics Support Services, Financial

Restrictions, Business Incubator, Collective Intelligence, Lab Virtualization, Validation, Case Study.

Abstract: Start-ups and other innovative, but small enterprises – such as those associated with business incubators -

usually have financial limitations that hinder their attempt to properly address product and service lifecycle

challenges. Some of these challenges regard aspects of prototyping, production and logistics (PPL). Inability

to properly address PPL challenges sometimes delays time-to-market too long, causing the company to fail.

In order to assist companies to efficiently address PPL challenges, a low-operating-cost, risk-seeking, PPL

Service Centre is being planned for an incubator in Brazil. In order to account for financial restrictions, the

Centre’s operations are to be based on blended learning pedagogy but expanded to encompass provision of

consulting services and access to laboratory and workshop’ facilities. Creating such a Centre is timing

consuming and resource intensive. Therefore it must be demonstrated that the investment will be

worthwhile. A small investigation has been conducted which has looked into the PPL needs of technology-

based enterprises associated with the incubator. The results have been used to specify and initially operate

the Centre to allow for a more blended style in service provision. This paper summarizes the investigation,

its results and the Centre’s initial operation and preliminary achievements.

1 INTRODUCTION

Innovative but “micro” and small enterprises

(MSEs) have budgetary restrictions that limit their

capacity to invest in staff training and consulting

services to address barriers and problems throughout

the life cycle of their new products or services. This

is true everywhere (Tiwari and Buse, 2007) but

appears to be the norm in emerging markets such as

in Brazil. Indeed, “need of investments” appears

frequently in surveys of technology-based MSEs by

the Technology Park Foundation of the State of

Paraíba (www.PaqTc.org.br) in Brazil.

Available funding to Brazilian MSEs tends to be

destined for innovation, research & development

(R&D) activities. Albeit their importance for market

success, activities later on the lifecycle, such as

prototyping, production, logistics, marketing

(including market acceptance tests of prototypes)

and sales are historically allotted little investment.

Over the years, PaqTc has observed that a significant

percentage of failures of incubated MSEs can be

attributed to inadequate attention to and actions in

prototyping, production and logistics (PPL) in

anticipation to or in support of marketing & sales

(M&S) operations.

To reduce the failure rate of its MSEs and to

alleviate their difficulty in securing investments for

PPL, PaqTc with sponsorship from the Brazilian

Research Council (CNPq) decided to plan and

operate a PPL Service Centre that has low fixed

costs and offers accessible and effective solutions to

PPL problems. This position paper presents the

planned centre whose service and operations extend

Blended Learning (BL) principles to encompass and

mix training, consultancy and workshop practicing.

BL refers to an instructional environment where

interactions between instructors and trainees take

place face-to-face (such as in a classroom where the

interactions are mostly “synchronous”) and using

Information and Communications Technology

(ICT)-based facilities (for asynchronous interactions,

such as participating in a Web course through a

computer or smart phone). ICT-based facilities allow

477

Antão B. Moura J., A. de Barros M. and P. Garcia F..

Blended Learning and Consulting for Resource Limited Enterprises - The Case of a Prototyping, Production and Logistics Service Centre at a Business

Incubator in Brazil.

DOI: 10.5220/0004342504770483

In Proceedings of the 5th International Conference on Computer Supported Education (CSEDU-2013), pages 477-483

ISBN: 978-989-8565-53-2

 2013 SCITEPRESS (Science and Technology Publications, Lda.)

the trainee to have some control over time, location,

sequencing and pace of the instruction he or she

receives. In addition, online courses reduce the cost

of attending lectures taught by top calibre

instructors: (Horn and Staker, 2011) argue that BL

grew out of online courses for students who were

taking higher level classes in rural K-12 school

districts in the US which could not afford bringing a

teacher in for face-to-face sessions.

Its potential for cutting costs and instructional

media flexibility make BL pedagogy central to

modern training programmes. Again quoting from

(Horn and Staker, 2011, page 3): “Bleak budgets

coupled with looming teacher shortages amidst an

increasing demand for results are accelerating the

growth of online learning into blended

environments… (in order for schools) to do more

with less.” On a cautionary note, (Garrison, 2004)

points to BL implementation complexity with the

“challenge of virtually limitless design possibilities

and applicability to so many contexts”.

The context of interest here is that of on-the-job

training and problem solving in PPL at start-up or

other innovative MSEs under financial duress.

Actual problem solving usually requires consultation

with experts or practioners besides effective training

to grasp and adopt the solution to be implemented.

The specialized bibliography brings little insight on

applications of BL principles to training on PPL

activities let alone to consulting on PPL. This paper

contributes by adding to such insight.

This paper proposes a specification for a PPL

Service Centre that applies BL principles to facilitate

creative and effective solutions to PPL staff training

and PPL problem solving through asynchronous

learning/consulting networks of risk-seeking experts

(in an ad-hoc community of trust) and sharing of

(possibly) virtualized (i.e., over-the-internet-

accessible) lab/workshop resources and facilities.

The foregoing discussion leads us to posit the

research question (RQ) this paper addresses as: “Can

BL principles be applied to training and consulting

services to address PPL problems effectively and

efficiently?” Here, we assume this question will

have been answered positively if stakeholders of

MSEs which are (potential) clients of the proposed

PPL Centre declare they are satisfied the specified

services will help them address PPL problems

successfully in a cost-effective manner. Since work

on the Centre has just started and it is still on-going,

the remainder of this position paper only provides a

preliminary answer to the RQ. (An answer with

greater confidence requires a longer observation

interval and work towards that is on-going.)

2 RELATED WORK

Much of the rich bibliography on BL in

Conference proceedings (e.g., CSEDU, 2009-12)

and in Journal articles (JALN, 1997-2012) reports

on applying BL approaches to improve instructional

cost and effectiveness in academic, government and

corporate settings covering disparate areas such as:

Humanities and the Arts (Spohrer and Cassidy,

2012); Engineering (Rouvrais et al., 2005) and

related fields – e.g., IT; and, Health (Brandt et al.,

2010). The bibliography reveals that BL has become

the basis for most employee orientation and training

programmes worldwide – see for instance,

(Internexia, 2011) for human resource development

programmes in general. On the other hand, reports

on BL for PPL professionals are almost non-

existent. (Manesh and Woll, 2007) describes a

conversion effort by Intel Corporation from a

classroom to a BL approach for on-the-job training

of equipment operators; the authors observe gains in

costs, lead time to proficiency and production.

The greater part of the reported work, however,

regards experimentation with BL for teaching

(JALN, 1997-2012) or by large corporations – such

as IBM and Intel in the high tech industry (Bersin,

2004). Albeit some of the works address financial

restrictions (Horn and Staker, 2011), the focus is on

curriculum design and learning performance.

Also, BL principles appear to have been applied

to consulting services sparingly. One exception is

(Work Write, 2012) which offers mentoring and

consulting on documentation writing – such as

software online help. We found no reports on mixing

BL and consulting to address PPL problems.

This paper proposes delivering training and

consulting coupled with sharing of infrastructure in a

more blended style as a way of: i) improving skills

in designing and applying solutions to PPL problems

by professionals of small enterprises through

interactions with a community of invited, specialized

consultants and practitioners; and, at the same time,

ii) meeting financial restrictions typical of these

enterprises. The proposal is a new application of BL

in the sense that it includes “blended consulting” and

resource sharing through favours from partners. As

such, the paper contributes to the literature on BL.

3 NEEDS AND REQUIREMENTS

In 2012-Q2, PaqTc interviewed executives from 7

MSEs in North-eastern Brazil - the region of the

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Park’s operations since its founding in 1984 and one

of the poorest in the country. These MSEs produce

hardware bits as part of services for boat building,

engineering, home automation, musical devices,

sports instrumentation, point-of-sale software and

mobile communications – one company has been

functioning for over 25 years; another for over 10

years; and the rest, close to 5, having been incubated

at PaqTc for the last two. All were selected based on

their (eventually) successful PPL experiences and

their knowledge of PaqTc’s operating limitations.

Unstructured interviews (Denzin and Lincoln, 2005)

with the executives elicited information on their past

and current PPL needs and solution requirements to

serve as basis for the PPL Centre specification.

3.1 MSEs’ PPL Needs & Problems

According to the interviewed executives, existing

courier or transport services sufficed for logistics at

least initially, when the company ordered parts to

build prototypes or to deliver small production lots.

Also, stock keeping did not pose much difficulty. On

the other hand, major PPL problems for MSEs arose

during construction of prototypes, running pilot tests

and organizing production. Prototyping problems

were particularly pressing at the start-up stage.

To address these major problems, interviewed

executives indicated their MSEs need(ed):

i) “professional advice from expert consultants”;

ii) “better knowledge and information about PPL

activities, procedures, best practices and tools” –

be it to properly contract (and eventually to

become independent of) consulting services in i)

or to leverage the scarce resources (funding, staff

and facilities) available internally or at PaqTc’s

incubator to better align PPL activities to R&D

and M&S goals;

iii) “guaranteed access to performance-and-quality-

enhancing prototyping infrastructure such as a

laboratory, workshop or equipment”;

iv) “information on import procedures and forms”

for certain prototype components and parts; and,

v) “a minimal, separate PPL budget” to pay the

expenses incurred in tending to the above needs.

The above MSEs’ “wish list” clearly indicates

the need for blending training with consulting and

supporting these blended activities with availability

of adequate information and infrastructure. Since it

is not usually in the mission of an incubator to tend

to need v), the planned Centre would attempt to ease

the rest. Although not a requirement, but because of

need v), use of multiple media is a natural economic

choice for the delivery of services.

3.2 Requirements for the PPL Centre

Requirements for the PPL Centre are derived from

the target MSEs’ profiles and needs and the

incubator’s characteristics and goals:

i) Internal preparedness – the overall goal of the

PPL Centre’s services should be to ensure MSE

internal capabilities towards PPL activities.

ii) Comprehensive coverage – services should be

provided in areas that impact PPL (not just for

PPL proper) in a comprehensive and integrated

manner (e.g., training, hands-on experiments,

consulting, information & equipment access and

technical assistance).

iii) MSE-orientation – Service provision should use

material, language, practices, tips, check lists and

real-world examples in a way that is accessible

and of interest to MSE professionals (e.g., there

is little use in examining “production at Intel”).

iv) Customization – since PPL problems may vary

with industry, target-market, staff and

infrastructure specialization, so should the

services provided for solving them (i.e., services

should be customized to match the client MSE’s

characteristics and its needs).

v) Minimalist permanent structure – to reduce

initial investment and fixed operating costs of

staff and infrastructure.

vi) Sustainability – the PPL Centre should charge

for services and facilities it offers client MSEs.

vii) Simplicity and affordability – information and

services rendered by the PPL Centre should be

efficient in terms of clarity and cost, leveraging

PaqTc’s and partners’ resources (facilities,

know-how and time), to achieve the most return

on the (small) disbursement by the client MSE.

4 A PPL SERVICE CENTRE

The mission of PaqTc’s PPL Centre is, first and

foremost, to identify and facilitate solutions for

prototype building and testing problems faced by

start-up, micro and small enterprises. It should also

support these enterprises in production and logistics

aspects. Complementarily, it should help these

enterprises develop internal PPL-problem-solving

capabilities. This mission addresses requirement i).

To take care of requirements v) and vi), the

Centre’s permanent staff is to be kept to a minimum

needed to coordinate actions. The Centre’s

Coordinator should preferably be a well-connected,

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retired PPL professional who could work part-time

to assist MPEs and recruit and engage consultants.

To keep costs low, consultants will be engaged

on an expertise, just-in-time, ad-hoc and taskforce-

oriented manner. They may be compensated by

client MSEs in the form of direct payment for

services rendered or through some joint-venture

arrangement (stock option, share of results of

product being considered, etc.). The Centre is to

retain a percentage of consultants’ compensation for

its financial sustainability.

The remaining requirements drive the Centre’s

service specification.

4.1 Services

The PPL Centre is illustrated by the rectangle in

Figure 1. Initial services are organized into 4 groups:

A, B, C and D. BL principles are employed in the

service specification of groups A and B and to

integrate all four groups. A scaled down approach of

collective intelligence – in the sense of harnessing

collaboration within a community rather than a

“mass” (Glenn, 2009) of expert, multidisciplinary

consultants – is used to support service provisioning

in groups A and B. New services may be added as

needed. Next, each group is discussed in turn.

Figure 1: PPL Centre’s Service Areas.

A) Consulting: includes services for

diagnosis and solution of PPL problems and may

also encompass complementary (pre-, during- or

post-production) consulting on production financing,

Project Management or M&S for proof of concept

and market acceptance tests, for instance. (Indeed,

there may be no point in enhancing production if one

has difficulty making sales.) These services are to be

supported by:

i) Identification, selection and engagement of

expert consultants who may not necessarily be

local, but could be anywhere in the country or

even in the world. The use of Web conferencing

and Voice over IP (VoIP) facilities allows

participation of remote consultants blended with

face-to-face sessions by local consultants and

client MSE’s professionals in a BL-type

environment. Further, consulting activities may

be integrated with multimedia training and

hands-on equipment practice or via computer

simulation (“equipment or lab virtualization”) for

better leverage of the solutions to be deployed.

ii) Customization and delivery of information and

assistance on Supply Chain Management (SCM)

for niches of interest (IT, agribusiness…) – for

PPL activities, MSEs need to know which and

where major suppliers are out there; supplying

conditions (quantity, quality, shipping, price,

payment, maintenance & support, returns); etc.

Delivery of such information may be done using

a blend of media, as an e-learning experience or

even by underpinning consulting services.

B) Training: face-to-face, online or blended-

type courses on PPL aspects. Courses may be

offered asynchronously or synchronized with

consulting activities and may include visits to and

exchanges with centres of excellence in PPL

(Pisano, 2010) and on-the-job training. Interviewed

MSEs have demanded courses on “SCM for MSEs”,

“PCP for MSEs”, “3D Prototype Modeling/3D

Computer-aided Design” and “Additive

Manufacturing”. The SCM course, which has

already been offered and evaluated (see 5.

Validation), consists of a blended training-

consulting solution comprising a 6-hour classroom

experience, 8 hours of Web-based activities and a 4-

hour web consulting session for on-the-job

applications. Participants were taught about SCM

concepts and software and integration to Enterprise

Resource Planning (ERP) modules. Consulting

through Skype and Web video conferencing was

brought in to explore ERP issues. Web activities

consisted of attending Webinars from software

suppliers and discussion with instructors (similarly

to blended consulting) and (asynchronously)

watching videos on supply chain business processes.

C) Missions, Events and Shows: organizing

and charging for MSEs’ joint participation in

business missions and in PPL events and shows,

even asynchronously from training activities, is a

way to strength and expand PPL professional

networking, enhance MSEs’ awareness and self-

reliance towards PPL activities and reduce costs.

D) Infrastructure and equipment sharing:

the Centre will arrange for client MSEs to share

(rent) PPL labs, workshop and equipment (ex., CNC

Missions,

Events,

Shows

D) Lab,

equipment

sharing

)

Training

PPL

Centre

PaqTc

1. Minimal structure

2. Outsourcing

3. MSE-acessible

4. Sustainability

(fees, commissions)

)

Consu

ting

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lathe, 3D printer). It may provide its own facilities

(it is setting up an additive manufacturing lab), or

collaborate with partner institutions such as local

universities or manufacturers which may have PPL

lab/equipment spare capacity to share. Sharing

postpones capital outlay by MSEs and improves

partners’ resource utilization (and hence, their ROI).

If sharing is done over the Internet, one gets

virtualization of workshop activities (e.g., 3D design

or additive manufacturing) or equivalently, a

blended lab (Campoy et al., 2011) or workshop.

5 PRELIMINARY VALIDATION

The proposed PPL Centre is in its early stages of

existence. Work to bring its specification closer to

market reality and to validate its results is on-going.

Preliminary validation efforts however, provide

evidence the Centre is (already) useful to MSEs.

Evidence is in the form of face validity perceptions

of entrepreneurs; evaluation of adequacy and

usefulness of training services; and, a case study of

provisioning blended consulting services.

5.1 Face Validity Test

We say the PPL Centre has face validity if it “looks

like” it is going to lead to a positive answer for the

research question (RQ) in section 1.

To test the Centre for face validity, we conducted

a survey research (Denzin and Lincoln, 2005) with

22 professionals who represented or worked with

over 300 MSEs: the 7 interviewed executives

(section 3); 3 professionals from the Brazilian

Agency for MSEs (Sebrae); 6 from PaqTc’s

incubator; and, 5 independent PPL consultants and

practitioners. After a presentation on the PPL

Centre, the surveyed professionals were asked to

comment on the service specification and to indicate

what they thought the answer to the RQ would be.

After suggesting minor adjustments to the

specified services (incorporated in section 4.1

already), the respondents, unanimously, gave “yes”

as an answer (the corresponding Guttman scaling

was “Yes”, “No” and “Not sure”). Again, note that

face validity means that the PPL Centre’s blended

services “look like" they will work, as opposed to

"have been shown to work". Some evidence to the

latter is detailed next.

5.2 Evaluation of a SCM Blended

Course

Twenty eight professionals from 20 companies of

varying sizes (from micro to very large) and

industries participated in the BL-based course on

SCM (subsection 4.3B) in September 2012. After

completing the course and seeing a presentation on

the Centre’s services, they were asked to answer the

research question and to evaluate the SCM course

contents and its BL delivery approach.

They were unanimous in responding the research

question positively; and, 90% of them said the

course contents and blended training/consulting

delivery method were “good or very good” (from a

“very bad, bad, average, good and very good” set of

Linkert options); the remaining 10% opted for

“average”. Comparison of results from non-BL

classes on SCM taught three times previously

indicate a higher satisfaction level with the BL-

based SCM course mixed with blended consulting:

“…more motivating and effective than just the

traditional classroom-only or BL-only approach”.

5.3 Case Study of Blended Consulting

As a start-up in North-eastern Brazil, RG Electronics

(RGe) innovated on special effects pedals for

electric guitars. RGe faced difficulties in producing

the pedals; difficulties worsened as the company

incorporated new products in its portfolio.

An ad-hoc team of 3 independent consultants

was assigned to serve RGe. Consultants worked for

free (but could have negotiated some sort of

compensation). Work sessions were conducted in a

blended manner: face-to-face and through the

Internet and phone. Early (physical) visits to RGe

revealed a recently hired production team with

experience in circuit board assembly and tests but no

experience nor knowledge on production planning

and management. In fact, the production

environment was shared with other company’s

activities and the CEO functioned as PPL fire-fighter

frequently, which led to inefficiencies.

The consulting team recommended RGe’s

production professionals take the “PCP for MSEs”

course (subsection 4.3B) and RGe appoint a

production manager (other than the CEO). In

addition, they also identified other barriers – namely,

just-in-time or “sales-synchronous” production;

M&S team and partners’ compensation policy –

which needed addressing to minimize negative

impact on production. Financial barriers were eased

with sponsorship arrangements that consultants

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made for RGe to participate in trade and innovation

shows in other regions of Brazil – from where the

company engaged in regional M&V actions and in

contacts with suppliers. Two months after consulting

with the PPL Centre, RGe’s CEO stated that “the

company is now better organized and production is

running more smoothly”. When answering

positively the RQ, he also indicated the “blended

services will have a long-lasting, positive

contribution to other MSEs in major PPL aspects”.

6 CONCLUSIONS

AND RECOMMENDATIONS

The main contribution of this position paper was the

proposal for blending training and consulting

services for effectively and economically dealing

with prototyping, production and logistics (PPL)

problems at micro and small enterprises (MSEs).

Blending is enacted here in the more traditional way

of blended learning (BL) which uses multimedia

delivery and also in mixing and complementing

training with consulting (and vice-versa) and

integrating that to information sharing and

infrastructure virtualization.

The proposal was investigated as to its adequacy

and usefulness to MSEs through a preliminary

validation effort. The results are encouraging and

albeit their little statistical significance, they suggest

that the research question may be answered

positively – i.e., that it is possible to specify and

provide a blend of training and consulting services

with support from BL-like infrastructure

virtualization to provide effective solutions to

MSEs’ PPL problems at low costs.

Upfront economy in executing designed

solutions (“use of additive manufacturing” for

instance) is made possible by fostering a community

of risk-seeking consultants and by sharing (possibly

through virtualization and renting) underutilized

PPL facilities from partners.

The proposed blended service approach seems

naturally more comfortable for clients, better

performing and more economical. In the case

studied, it was less costly (fewer trips and physical

meetings) and faster (no displacement overhead for

the involved consultants). We recommend it be tried

in incubator settings where MSEs have to be assisted

but have a small capacity to pay for services. On-

going work will further investigate the validity of

this recommendation.

ACKNOWLEDGEMENTS

We thank executives in the investigation of section

3, all those in the initial validation campaign and

anonymous referees for their comments and

recommendations. This work is being sponsored by

the Brazilian Research Council (CNPq) under

contract No. 554373/2010-6.

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